Correlation Between Tianshan Aluminum and Xinxiang Chemical
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By analyzing existing cross correlation between Tianshan Aluminum Group and Xinxiang Chemical Fiber, you can compare the effects of market volatilities on Tianshan Aluminum and Xinxiang Chemical and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Tianshan Aluminum with a short position of Xinxiang Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianshan Aluminum and Xinxiang Chemical.
Diversification Opportunities for Tianshan Aluminum and Xinxiang Chemical
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tianshan and Xinxiang is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Tianshan Aluminum Group and Xinxiang Chemical Fiber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinxiang Chemical Fiber and Tianshan Aluminum is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Tianshan Aluminum Group are associated (or correlated) with Xinxiang Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinxiang Chemical Fiber has no effect on the direction of Tianshan Aluminum i.e., Tianshan Aluminum and Xinxiang Chemical go up and down completely randomly.
Pair Corralation between Tianshan Aluminum and Xinxiang Chemical
Assuming the 90 days trading horizon Tianshan Aluminum Group is expected to generate 0.31 times more return on investment than Xinxiang Chemical. However, Tianshan Aluminum Group is 3.27 times less risky than Xinxiang Chemical. It trades about 0.01 of its potential returns per unit of risk. Xinxiang Chemical Fiber is currently generating about 0.0 per unit of risk. If you would invest 803.00 in Tianshan Aluminum Group on September 25, 2024 and sell it today you would earn a total of 0.00 from holding Tianshan Aluminum Group or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Tianshan Aluminum Group vs. Xinxiang Chemical Fiber
Performance |
Timeline |
Tianshan Aluminum |
Xinxiang Chemical Fiber |
Tianshan Aluminum and Xinxiang Chemical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tianshan Aluminum and Xinxiang Chemical
The main advantage of trading using opposite Tianshan Aluminum and Xinxiang Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianshan Aluminum position performs unexpectedly, Xinxiang Chemical can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Xinxiang Chemical will offset losses from the drop in Xinxiang Chemical's long position.Tianshan Aluminum vs. China State Construction | Tianshan Aluminum vs. Poly Real Estate | Tianshan Aluminum vs. China Vanke Co | Tianshan Aluminum vs. China Merchants Shekou |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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